The 99 percent
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The 99 percent
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Re: The 99 percent
#2Five points for the OWS guys.
1. Transparency. We need to see where every dollar of the US federal gov't is spent. It needs to be on the internet, and it needs to be easily accessable. An exception can be made for classified spending in specific, but not so categorically (IE we spend X on classified stuff). Additionally, just like there is a Surgeon's General Warning on cigarette packages, there needs to be a link on every candidates webpage that lists their top 100 donors, and what industry they are in. This website URL needs to be easily visible and placed in every television and radio advert as well.
2. Investment banks cannot also be commercial (depository banks). Investment banks become partnerships where c-level owners are financially responsible for the actions of their banks. The banking system survived before things changed from this, and it will survive afterward.
3. There should be a small federal tax on the sale of any type of derivative, bond, stock, or other financial instrument every time it is sold. Say $.10 per share, every time. The financial markets are for raising capitol for companies, not for financial hackers to make money. HFT is a waste of time and energy, adds unnecessary volatility, and has yet to be shown to be anything more than tangentially related to the goals of a financial security market, established for the purpose of raising capitol.
4. The tax code needs to be simplified. There are a number of ways to do this, but the end goal should be to end loopholes that allow companies like exxon to pay no federal taxes. Or any company for that matter to realize losses in the US and gains in a foreign country.
5. Finally, there should be a 4 term limit on US Senators, and an 8 Term limit on US Representatives. Self-explanatory.
Re: The 99 percent
#3Five points for the OWS guys. 1. Transparency. We need to see where every dollar of the US federal gov't is spent. It needs to be on the internet, and it needs to be easily accessable. An exception can be made for classified spending in specific, but not so categorically (IE we spend X on classified stuff). Additionally, just like there is a Surgeon's General Warning on cigarette packages, there needs to be a link on…
3. I'm not so sure about the effectiveness of the tax on financial instruments. I think it might be more effective to require reserves to be held by the issuer, maybe a few percent They are already required in some cases. A bank is required to to hold a percentage of deposits as capital. An insurance company is required to hold reserves against losses.
At the time of the crash there was something like $60 trillion in Credit Default Swaps floating around. A 5% reserve requirement sure would have slowed that down. A reserve requirement would reduce the volatility of the commodities market, which would allow those who needed it a hedge, but reduce the incentive for speculators to churn.
Re: The 99 percent
#4Five points for the OWS guys. 1. Transparency. We need to see where every dollar of the US federal gov't is spent. It needs to be on the internet, and it needs to be easily accessable. An exception can be made for classified spending in specific, but not so categorically (IE we spend X on classified stuff). Additionally, just like there is a Surgeon's General Warning on cigarette packages, there needs to be a link on…
3. I'm not so sure about the effectiveness of the tax on financial instruments. I think it might be more effective to require reserves to be held by the issuer, maybe a few percent They are already required in some cases. A bank is required to to hold a percentage of deposits as capital. An insurance company is required to hold reserves against losses. At the time of the crash there was something like $60 trillion in…
The point of the tax is not to regulate the derivatives market. There are valid reasons for derivatives, and arbitrarily imposing a reserve requirement on a class of instruments that is ever changing and by definition, represents different alpha and beta is a bad idea. The point of the tax is to mitigate HFT strategies. In my view they don't add anything to the system when considered from the point of view of 'why' society allows/creates such systems.
Regulating crazy financial instruments will occur when what we call 'investment banks' but you could easily extend to all cooperatives that make money on financial instruments, are required to be partnerships. It's amazing how much self-regulation occurs when an actual person is personally responsible.
Re: The 99 percent
#5Five points for the OWS guys. 1. Transparency. We need to see where every dollar of the US federal gov't is spent. It needs to be on the internet, and it needs to be easily accessable. An exception can be made for classified spending in specific, but not so categorically (IE we spend X on classified stuff). Additionally, just like there is a Surgeon's General Warning on cigarette packages, there needs to be a link on…
1. We have something similar in Slovenia - Supervizor (http://supervizor.kpk-rs.si/). It's a tool that publicly displays how much government spending and of what sort goes into different corporations.
Re: The 99 percent
#6Five points for the OWS guys. 1. Transparency. We need to see where every dollar of the US federal gov't is spent. It needs to be on the internet, and it needs to be easily accessable. An exception can be made for classified spending in specific, but not so categorically (IE we spend X on classified stuff). Additionally, just like there is a Surgeon's General Warning on cigarette packages, there needs to be a link on…
1. We have something similar in Slovenia - Supervizor ( http://supervizor.kpk-rs.si/ ). It's a tool that publicly displays how much government spending and of what sort goes into different corporations.
This is really cool. I have often toyed, as a hacker that is, with making a website that tracks all the campaign contributions of every local, state, and federal candidate/delegate. The information is out there. Unfortunately, I haven't had the time, or the energy to divine the correct business model for such an endeavor. (and I don't mean one that works, I mean one that works for me ;-) )
Re: The 99 percent
#7Five points for the OWS guys. 1. Transparency. We need to see where every dollar of the US federal gov't is spent. It needs to be on the internet, and it needs to be easily accessable. An exception can be made for classified spending in specific, but not so categorically (IE we spend X on classified stuff). Additionally, just like there is a Surgeon's General Warning on cigarette packages, there needs to be a link on…
#2 is crucial - Glass-Steagall should never have been repealed.
Re: The 99 percent
#8Five points for the OWS guys. 1. Transparency. We need to see where every dollar of the US federal gov't is spent. It needs to be on the internet, and it needs to be easily accessable. An exception can be made for classified spending in specific, but not so categorically (IE we spend X on classified stuff). Additionally, just like there is a Surgeon's General Warning on cigarette packages, there needs to be a link on…
I'm really torn on #5. My pragmatic side says "hell yes", due to the very human nature law of those that most want to govern are the ones we least want doing it.
But... my rights side says all that is doing is taking away my right to vote for whom I want.
Re: The 99 percent
#9Five points for the OWS guys. 1. Transparency. We need to see where every dollar of the US federal gov't is spent. It needs to be on the internet, and it needs to be easily accessable. An exception can be made for classified spending in specific, but not so categorically (IE we spend X on classified stuff). Additionally, just like there is a Surgeon's General Warning on cigarette packages, there needs to be a link on…
Can anyone with more experience and knowledge explain the effects of #3. I've read that HFT is actually a good thing because it basically acts as a market maker. This is just a back of the napkin opinion, but it seems that #3 would reduce liquidity in the markets.
We know that markets aren't perfect or else Buffet and other value investors couldn't survive. Does HFT make markets more or less perfect at pricing? Does this matter for making markets more efficient in reality, not some hypothetical perfect market?
Re: The 99 percent
#10Five points for the OWS guys. 1. Transparency. We need to see where every dollar of the US federal gov't is spent. It needs to be on the internet, and it needs to be easily accessable. An exception can be made for classified spending in specific, but not so categorically (IE we spend X on classified stuff). Additionally, just like there is a Surgeon's General Warning on cigarette packages, there needs to be a link on…
#2 is crucial - Glass-Steagall should never have been repealed.
Why? The institutions that got in trouble during 2008 had no retail banking arms (Bear, Lehman, Fannie & Freddie, Merrill, etc.). Glass Steagall is a red herring. Proprietary traders were largely not using deposits to finance their bets.